KEY POINTS
- APGC rejects claims that N2.8tn is a verified settlement for legacy debts, calling it misleading.
- The association urges transparency, insisting all reconciliations should follow formal bilateral agreements and verifiable audits.
- Revising figures outside the official process risks market instability and investor distrust amid existing structural challenges in the power sector.
The Association of Power Generation Companies, APGC, has dismissed claims by Presidency sources that N2.8tn represents a verified and final settlement of legacy debts owed to electricity generation companies.
APGC CEO Joy Ogaji described the figure as inaccurate and misleading, insisting it did not result from any officially concluded reconciliation process.
Ogaji challenged the Presidency sources to publish their audit findings and explain the basis for the N2.8tn figure.
She emphasised that the outstanding obligations are based on bilateral commercial agreements within the Nigerian Electricity Supply Industry, including metered power generation, energy dispatched, and invoices issued by the Nigerian Bulk Electricity Trading Plc.
Historical Context and Market Implications
The APGC CEO recalled that President Bola Tinubu had previously approved N4tn in July 2025 following a formal reconciliation involving GenCos, NBET, the Ministry of Finance, and the Office of the Special Adviser on Energy. Ogaji warned that revising reconciled figures outside established processes could undermine market confidence, deter investors, and fail to address structural issues causing the sector’s liquidity crisis.
Since the 2013 privatisation of Nigeria’s power sector, mounting debts owed to generation companies have continued to affect electricity supply and investor confidence. Delayed payments from NBET and distribution companies have limited GenCos’ operational capacity, with the liquidity shortfalls exacerbated by non-cost-reflective tariffs, foreign exchange volatility, and persistent settlement gaps.
